WELCOME

TO
NATIONAL LEVEL MEETING
OF PROJECT DIRECTORS OF
RURAL DEVELOPMENT

ANDHRA PRADESH
PRESENTATION ON
1.Community Managed Health &
Life Insurance
2.Total Financial Inclusion
3.Food Security

SANJEEVANI
Community Managed
Health Insurance

SANJEEVANI
Sanjeevani is a Community based
and Community managed Health
Welfare Scheme, promoted by Zilla
Samakhya, Vishakhapatnam.
This is an initiative to make
Healthcare Services accessible to
rural Self Help groups ( SHGs) and
to promote preventive Healthcare.
Good health is a pre-requisite to human productivity and the

Need for the Scheme

Existing schemes are not propoor

Cumbersome Procedure
Uncertainty
of
coverage
of
financial shock from health care
expenses
Expulsion
of
pre-existing
deceases (Rural poor wont go
for regular check-up of deceases

Need for the Scheme

Uniqueness of existing schemes

Insurer,
Insured,
TPA
and
Service Providers are un-happy
Existing health care facilities
from
Govt.
institutions
not
accessed adequately

Scope of the Scheme

Hospitalization Cover for
Surgeries and Medical Conditions
Free Outpatient Consultations.
Fixed discounts on
- Medicines
- Investigations
Consultation by a lady doctor on
specified days.

Administration of the
Scheme
The scheme will be implemented
and administered by Zilla
Samakhya, in coordination with the
Mandal Samkhaya, and Village
Samakhyas.

The Role of Zilla Samakhaya

The ZS is responsible for the day-to-day operation of the
Scheme and will ensure service standards at provider
Network for hospitalization and Diagnostics.
The duties will include,
Maintaining member database
Issuing Photo ID cards to the families covered under
the scheme
Creating a network of hospitals to facilitate Cashless
treatment to the beneficiaries of the scheme
Facilitating the authorization process with the Network
Hospitals
Claims Processing and settlement.

Coverage and
Premium

Period of operation from 1st May 2007 to

30th April 2008
Maximum amount payable Per Family Rs.
30,000/- for surgeries ( List provided ).
Maximum amount payable is Rs 5000/- for
medical conditions other than surgeries
under the Family Package 5.
10% of Co-Payment by the patient on the
final bill.
Premium payable is Rs. 260 per year for a

1.

Features of the
Scheme
Out Patient Consultation
PHC level: consultation with lady doctors once
in a week free of cost
Network Hospital (NWH): consultation free of
cost

2. Diagnostics:
Basic diagnostics will be done at PHC free of
cost
Diagnostics at NWH will be done at a fixed
discounted rate.
3. Quality Medicine
Free of cost at PHC level

Features of the
Scheme

Surgeries Covered
The scheme covers more than 1500 surgeries,
including all categories of complex and
common surgeries, such as
1. OBG includes normal delivery, LSCS and
Hysterectomy
2. General Surgery
3. Gastroenterology
4. Orthopaedics includes fracture surgeries
5. Genito-Urology
6. Endocrinology
7. ENT

The Team
Case Manager Role and
Responsibilities
1. Coordinate the referral system of the
patient
2. Regularly visit the Network Hospitals,
at least once a week, and ensure that
the terms and benefits of the scheme
are being properly followed.
3. Regularly interact with the beneficiaries
of the scheme undergoing treatment for
feedback.
4. Inform the Implementing Agency (ZS)
about any non-conformance, if any, and

The Team
Case Manager Role and
Responsibilities
6. Randomly verify the operated cases
for authenticity of the members.
7. Verify the authenticity of every case
received
for pre-authorization
and
Medical
Officer
Role and Responsibilities
submit report to ZS.
1. Approval of Preauthorization based on
necessity of treatment
2. Liaison with NWH
3. Quality monitoring of service providers

Process
of
Treatment

Availing

Beneficiary approaches VO
Representative

VO rep explains scheme

Beneficiary goes Network hospital

with ID Card, Receipt

Medical
treatment

Free OPD
Consultation

Admission for
Surgery
Intimation to
TPA/ZS by NWH

Patient pays 10%

of the bill
Investigation
Special rates

Pre-Authorizationfrom TPA/ZS
CASHLESS
Hospitalization
Member signs on
the Claim Form

Discharge

Claims Flowchart
Receipt of claims
From NWH

Incomplete

Document
verification

Communication To Hospital
Complete
Claim ID Generation

Medical Scrutiny and Claims Processing

Claim pending for supporting

Documents

Communication To Hospital

Approved Claims

Submitted To Trust (Weekly)

Letter Of Settlement To he Bank By ZS

Collection of DD
Dispatch o hospital

Outward

Progress
1. Total House Holds Covered sofar

: 32,840

2. Annual Premium per Family

: Rs.260/-

3. No. of Net working Hospitals

: 17

4. No. of PHCs & CHCs

: 27

5. Claims Received (May to December)

: 650

6. Claims Settled (May to November) : 650

7. Claims amount Settled
: Rs. 23.50
Lakhs.
Health Cards issued to all families covered
under the scheme

Impact
Free OP

: No. of Patients benefited

In Primary Health Centres

In Networking Hospitals

: 11,325
: 4,460.

Diagnostic Tests
20% discount on diagnostic tests
Amount benefited
Rs.1,51,860

Drugs
10% discount on drugs
Amount benefited

Impact
Medical Cases treated
Physical

373

Amount

Rs. 9,12,465

Surgical Cases treated

Physical

277

Amount

Rs. 14,37,664

Medical
Cases

Expenditure (From
May to December
2007)
Month

No. of Cases

Amount

May 07

3,000

June 07

19

30,967

July 07

58

1,27,800

August 07

26

1,12,300

September 07

54

1,05,500

October 07

74

1,49,272

November 07

60

1,30,908

December 07

81

2,52,718

TOTAL

373

9,12,465

Medical Cases
Treated
Type of Disease

No. of Patients

% of total cases

Cerebral Malaria

185

68%

Jaundice

76

28%

Normal Delivery

53

19%

Typhoid

27

10%

Bronchitis & Pneumonia

and Others

22

8%

TOTAL

273

Medical Cases
Treated

Surgical
Cases

Expenditure (From
May to December
2007)
Month

No. of Cases

Amount

May 07

34,231

June 07

16

1,00,300

July 07

46

3,33,800

August 07

28

1,14,986

September 07

25

1,31,090

October 07

36

2,27,595

November 07

67

3,28,050

December 07

54

1,67,612

TOTAL

277

14,37,664

Surgical Cases
Treated
Type of Surgery

No. of Patients

% of total cases

Hysterectomies

65

24%

Orthopedic

106

38%

Caesarian Section

52

19%

Hernia Hydrosols

34

12%

Tonsillectomies & Others

20

7%

TOTAL

273

Surgical Cases
Treated

Community Managed Life

Insurance Scheme

Community Based life Insurance Scheme

Objective
Need
Evolution
Implementation
Claim Settlement Process
Impact

DRDA

SERP

Objective

Scheme seeks to offer a risk mitigation measure for

the rural poor against sudden death & disability .

The CBO - SHG and their federations VO Mandal

Samakhyas and ZS play key role in evolution,
implementation of the scheme

DRDA

SERP

Need
Rural poor household having no access to formal Insurance
services to cover risks.
Very limited awareness about insurance related risk
mitigation options amongst the poor.
High premium coupled with tedious & time consuming claim
settlement process.
Participatory community based insurance delivery
mechanism meets the needs of the poor more effectively
than the provider managed insurance delivery.

DRDA

SERP

Evolution
Initiated dialogue with community on need for community

based life & General insurance and risks to be covered.

Dialoging with insurance providers by CBO with facilitation
support extended by functionaries.
Finalizing service providers with clear cut MOU between the
insurance providers and Zilla Samakhya.

DRDA

SERP

A.P. Level Achievement 2007-08

Total Members covered

26,15,540

Premium Amount collected

Rs.26.68 Crores

Premium Amount paid to

Insurance Company

Rs.21.71 Crores

No. of Claims Received sofar

7215

6133

Natural Deaths
Accidental Deaths
Claims settled sofar
Natural Deaths
Accidental Deaths
Claim amount settled

DRDA

: 6459
: 756
: 5515
: 618
:

Rs.15.73 Crores
SERP

District-wise Achievement 2007-08

District

Women
covered

Claims
received

Adilabad

93394

200

124

4675000

Ananthapur

129776

187

137

4025000

Chittor

336163

338

278

9340000

East Godavari

134000

306

236

8080000

West Godavari

153786

322

271

9130000

Kurnool

46319

141

103

3400000

Karimnagar

336946

59

16

320000

Khammam

109326

605

548

17830000

Kadapa

122701

656

600

20690000

Mahaboob Nagar

26028

174

131

3900000

DRDA

Claims
settled

Claim amount
settled

SERP

District-wise Achievement 2007-08

District

Women
covered

Claims
received

Claims
settled

Claim amount
settled

Medak

153217

1788

1585

5077250

Nizamabad

122500

318

270

9100000

Prakasam

66419

224

177

6310000

Vizianagaram

171000

648

593

18400000

Visakhapatnam

85632

235

193

7369000

Nellore

109459

209

173

6190000

Srikakulam

138348

299

256

8680000

Warangal

207359

309

274

9220000

Gunturu

73167

197

148

5575000

TOTAL

2615540

7215

6133

1573250

DRDA

SERP

Implementation in Visakhapatnam 2006-07

Amount collected by CBO per member
TATA AIG life insurance premium
New India Assurance premium
Corpus available per member at ZS

Rs. 105/Rs. 61/Rs. 12/Rs 32/-

Total 1,00,681 Members covered

Rs. 105.71 Lakhs Amount collected by Zillah Samakhya.
Rs. 61.41 Lakhs Amount paid to TATA-AIG towards life
Insurance
Rs. 12.08 Lakhs Amount paid to New India Assurance
towards general insurance.
Rs. 32.21 Lakhs with ZS.

DRDA

SERP

Implementation in Visakhapatnam 2007-08

Amount collected by CBO per member Rs. 80/ Life Insurance Corporation
National Insurance
Corpus available per member at ZS

Rs. 50/Rs. 18/Rs 12/-

Members covered so far as against proposed target of

83,266 members.
Rs. 66.61Lakhs Amount collected by Zillah Samakhya.

Rs. 41.63 Lakhs Amount paid to Life Insurance towards

life insurance.
Rs. 14.98 Lakhs Amount paid to National Insurance
towards general insurance.
Rs. 9.99 Lakhs with ZS.
DRDA

SERP

Claim settlement process

Information from affected family to VO from SHG.
Verification and Certification by VO.
Claim submission to Zilla Samakhya through Mandal
Samakhya.
Verification by ZS monitoring committee.
Claim submission by ZS to insurance company.

Claim settlement by ZS within 7 days of receipt of the claim

by ZS pending release of money by insurance company is ZS.
Claim shall reach ZS within 90 days of occurrence of the
incident.

DRDA

SERP

Impact in Visakhapatnam District

2006-2007

Affordable premium
Immediate claim settlement by Zillah
Samakhya.
357 Claims settled so far against 390 claims
received.
Rs. 89.10 Lakhs Amount
distributed towards
2007-2008
claim
193 Claims settled so far against 235 claims
settlement.
received.

Rs. 73.69 Lakhs Amount distributed towards

claim
settlement.
DRDA

SERP

Total Financial Inclusion

General definition of financial inclusion

Accessing to banking services at affordable cost
- Opening of no frills account
- Issue of General Purpose Credit Card

Objective
To address all the financial needs of all
households

Should we focus on all

or should we focus on
poor ?

The Spread of Financial Inclusion

Whether urban or
rural, the spread is
wide in non-poor vis-vis poor

Analysis of financial
needs of the poor

The Expenditure Portfolio of the Poor

House construction / repairs
farm activities
Working capital
non-farm activities
major
Health problems

minor
school education

Children education
higher education
Marriage purposes
Income generation Activities
Long term investment on land

Scale of exp on these items

House repairs/construction-5,000 to 20,000
Marriage purpose - 20,000 to 50,000
Health needs - 5,000 to 15,000
Children higher education - 5000 to 10,000
Income Generating Assets 10,000 to 15,000
Working Capital - 5,000 to 10,000
Long term investment on land 30,000 to
50,000

Own funds vis--vis debt

Own funds/SHG/Bank
linkage

Debt from money

lenders/ MFIs

Food

House

Working capital

Health

Health

Marriage

Children education

Landpurchase/development

Income generating asset

Higher education

Coping mechanism by the rural poor family

Banks

Debt

Money lenders/friends & relatives

For smaller needs it is from banks

For larger needs it is from money lenders/mfi

Which approach is better to reach the poor?

Opening of no frills account

Issue of general purpose
credit card

or/and

Deepening the credit

through SHGs

Why SHG model for Financial Inclusion?

The exclusion is more wide spread and deeper in
poorer sections and priority is given to the poorest
of the poor and the poor. The poor are in SHGs
SHG is proved to be an effective financial
intermediary
Financial inclusion does mean
(1)credit disbursement,
(2)credit utility and
(3)repayment
possible through SHG model

Financial inclusion of Poor

in Andhra Pradesh through
SHG-Bank linkage

Financial inclusion of the poor in Andhra

Pradesh through SHG-Bank linkage
In AP, 90-95% of the poor are in SHGs and
hence, inclusion is wider (number covered)
in the poor.
But inclusion is NOT deeper (when
compared to financial needs)

Financial inclusion not deeper - empirical

evidence

Financial inclusion not deeper empirical evidence

In CC Palli village the total debt of 201
families was Rs. 29 lakh
Bank share was 11% (mainly for small needs)
Money lenders share was 87% (mainly for
big needs)
Others share was 2%

The Result .
Loan
amount
from
money
leners/mfi
in each
SHG
(average)

1,50,000

Rate of
interest

Interest
per month
paid by
SHG to
money
lenders/
mfi

Interest
per
annum
paid by
SHG

No of
SHGs in
the
district
(average)

Total
interest
amount
paid by
SHGs per
annum in
a district
to money
lenders/
mfi

36

4,800

57,600

40,000

230
crores

Bank linkage per district (average):

150 crores

Interest amount paid by all SHGs in the district: 230 crores

PLAN OF ACTION

Piloting the model

Take up this model in two villages in each
service area of each bank-branch during
2007-08.

Identification of village
Having good track record in SHG-Bank
Linkage
Having SHGs which are following best
practices
Having good book keeping practices in SHGs
Having SHGs with Poorest of the Poor and
SCs and STs
Identification shall be done in consultation
with CBRM/Mandal Samakhya

Pre-conditions
Facilitating the SHGs to enable them to
be good SHGs - at least THREE months
preparatory work has to be done in the
village
All the members of each SHG shall be
educated on financial inclusion
Book-keeping shall be strengthened
Good Monitoring mechanism shall be
positioned

Pre-conditions- intervention by IKP

CRP team consisting of four members-IB, TFI, BK and Activist, will be
positioned
The team will work for 3 months in each village with 6 to 7 SHGs
The team will develop best practices in those SHGs
-weekly meetings,

-weekly savings
-weekly internal lending of small debts,
-weekly recovery of small debts,
-book keeping for every 4 SHGs, ONE book keeper
-need based lending,
-awareness among all members,
-self-preparation of MCP by the SHG
Positioning of anchor person for the branch

Assessing the needs of each member of SHG

MCP shall be SHG-driven

The MCP includes the following:
Outstanding debt of the member to money lender
or to mfi (the outstanding loan to Bank will be
added at the end)
Income Generation
o
o

Requirement for investment in income generating asset

Working capital for agricultural purposes and for existing
economic activities.

Social needs like health, education, food security,

house repairs/construction, marriage purpose etc.,

Micro Credit Plan under TFI

Name of the SHG

Bank Account no.

Bank-branch name:

VO Name

Village Name:

Mandal Name:

Sl
no

Name
of the
memb
er

Socia
l
Staus
(SC/S
T/BC/
OC)

Eco
Stat
us
(PO
P/P
oor/
NP)

To liquidate high cost debts

Money
Lender
s

MFI

Othe
rs

Tota
l

IGA

Unit

Investme
nt

Social needs

Total

Nee
d

Requir
ed
amoun
t

TOTAL
TFI Plan total:

Signatures of SHG reps:

Outstanding bank-linkage:

Grand Total:

Total

Grand
Total

Repayment by members to SHG

The installment shall comprise both principal and
interest
It shall be monthly installment
It shall not be short term repayment minimum 60
months
The members repayment is as per their
capacity to re-pay
The members repayment schedule may vary-below
60 months-may be 40 to 48 months
There shall be surplus in SHG in every month

Repayment

Irrespective of income of the poor

Principal

Ins
amou
nt

Number
of Ins

23

50

1000

23

50

5000 115

50

5000

23

10000 230

50

10000

23

1000

Principal

Ins
amo
unt

Number
of Ins

Correlated with income

of the poor
Principal

Income

Ins
amou
nt

Numbe
r of Ins

1000 1200

40

30

150

5000 1000 100

55

500

10000 2500 350

38

Repayment Plan of Members to SHG &

Repayment Plan of SHG to Bank
Sl no

Mem

Loan

Sources

INCOME
monthly

crop

Repayment
Total

Monthly
Principal

int

Tot

No of
inst

Crop
(prin)

X1

30000

dairy

2000

24000

750

450

1200

40

X2

45000

Ag land,

3000

7000

43000

1320

280

1600

5000

35

X3

28000

X4

54000

X5

47000

X6

15000

X7

25000

X8

40000

X9

36000

10

X10

45000

65000 385000

10350

3650

14000

30000

REPAYMENT
TO
BANK

6000

3650

SURPLUS IN SHG

4350

TOTAL

365000

320000

60
30000

Why surplus in SHG?

Loan amount
from Money
Lenders

Year-wise distribution
of loan (taken from
money lenders)

150,000 < one year

One year to
two years
> two years

Average corpus needed in SHG to

avoid money lenders/ mfi
Year-wise

st
60,000 1 yr

TOTAL
60,000

2nd year
60,000

45,000

rd
30,000 3 year

30,000

4th year

15,000
150,000

How to pay on monthly basis by the

member ?

High Cost i paid to money lender is enoughto

liquidate bank loan

Loan from Money

Lender

Loan
from
money
lender or
MFI

Rat
e of
inte
rest

Inter
est
per
mont
h

10000

36

300

Loan from Bank

Loan
from
bank

Ra
te
of
int
ere
st

Inte
rest
per
mon
th

differ
ence
betwe
en
ML/
mfi
and
bank

10000

73

227

EMI of
the
bank
per
month
(princi
pal)

230

No
of
inst
alm
ent
s

Rate of
reimbu
rsement
of
PAVAL
A
VADDI

Amoun
t of
PAVAL
A
VADDI
for
every
SIX
months

No
of
SI
X
mo
nth
ly
spe
lls

Total
amount
of
PAVAL
A
VADDI/
per
membe
r

44

287

2083

Monthly payments..

Stabilising the monthly income

Multiple livelihoods
Access to Employment
Guarantee Scheme

If a big loan is again required .

Increase in the corpus of SHG

Surplus in SHG every month-the difference

between members repayment to SHG and

SHGs repayment to bank
Increase in savings by the member in SHG

Increase in the corpus of VO

Increase in savings by the SHG to VO
Introduction of APADA NIDHI-Rs.10
per each member with VO
Converting the CIF into emergency
fund

Financial Inclusion and other products

To members
To Village Organisation

Other Products to members of SHG

savings product RD for their children
insurance product-covering life, health,
and assets
educational loan product through
SHGs

Cash Credit Limit to VO

Food Security initiative

Milk collection centers
Marketing activities
The limit may be provided to the VO
as per the guidelines approved by
SLBC.

Interventions in key activities by the

project
Identification of those key activities,
where huge investments are made by the
members
Providing backward and forward linkages
to increase production and marketing
access

Monitoring

Self-monitoring by SHG and VO

Vetting of the plan by the SHG itself and later
by the VO
Disbursement of loan to the members as per
MCP
Utilization of loan by the member in the
presence of the SHG or its committee
Submission of UC by the SHG to the bank and
to the VO
Verification of assets purchased by SHG in a
periodical manner by SHG itself and by VO

Monitoring intervention by IKP

Community Based Recovery
Mechanism (CBRM)
Participation of Branch Manager/Field
Officer in VOs scheduled meeting
Computerisation of transactions
One Anchor Person for each bankbranch

Community Based Recovery Mechanism (CBRM)

Two members from each VO
All the rep from all VOs in a service area will form
into CBRM
They will meet once in a month on a fixed date in the
premisis of the branch
Each VO committee will maintain DCB of the linkage
for that VO and bring it to the meeting
The OD & NPA will be discussed and corrective
action will be taken by the committee before the next
meeting and ensures 100% recovery
The utility of the loans will also be monitored by the
committee and discussed in the meeting

Bank Linkage amount taken under T.F.I

in Maharajpeta (V) Consisting of Maharajpet, Gopuralam & Dontanapalli Hamplets of Rangareddy
Dist

Loan Amount Taken Under TFI

in Gopularam H/o Maharajpet (V) of Rangareddy District

Relief in interest burden per annum

in Gopularam H/o Maharajpet(V) of Rangareddy District

Building up of Assets of the poor in T.F.I.

Village : Gopularam

Increase in Annual Income of the poor

in Gopularam H/o Maharajpet (V) of Rangareddy District

EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON THE POOR

IN GOPULARAM h/o MAHARAJ PET (V)

Before TFI
After TFI

Bank Linkage
Additional income

Bank Linkage
Additional income

Bank Linkage
Additional income

Bank Linkage
Additional income

Achievement done sofar

2006-07
Total Villages covered

320

Total SHGs covered

5218

Total Financial Assistance extended

Rs.173.43 Crores

2007-08
Total Villages covered
Total SHGs covered

:
:

1356

24456

Total Financial Assistance extended :

Rs.717.48 Crores

FOOD SECURITY

The reason
The availability of rice under PDS is on an
average 15 kg/month per family
The requirement of rice for an average size
family in rural area is 50 kg/month
The gap is on average 35 kg/month
The 35 kg/month is used to be procured from
open market
2/3rd of the food security of the poor becomes
vulnerable and subject to market fluctuations

The coping mechanism

The stream of income of the poor is not regularit is fluctuating on day basis
The expenditure for food for each day is more or
less the same
The negative gap is being met by the poor either
through borrowing or obtaining the food grains
on credit basis or adjusted with low intake
The sufferers in the family are women and
children

Objectives
To attempt to minimise the Food Gap in POP and the
Poor
To facilitate for the emergence of Total Food Security
to the target poor at household level
To minimize the rate of exploitation in consumption
expenditure made by the poor.
To provide access to good quality and accurate quantity
of rice by the target poor through cheaper rates
TO correlate the nutritional improvement in the
pregnant women and children with food security
initiative

Rice Credit Line-Reduction in Food Gap

Identifying the gap between the actual

requirement of rice per month for each
house-hold and the rice availability from
FP shop
Consolidating the requirement at VO level
Provision of funds from the CIF @ 90 % of
the required funds 10% being the
beneficiary contribution

The Cyclical Process in Rice Credit Line

Procurement of required rice on monthly

basis by the VO from open market
Distribute it to SHG members through
SHGs
Recovery of money through 3 or 4
installments by the VO from SHGs in the
same month with little profit margin

The Process
Sitting with the members of each SHG
Analyse the consumption pattern
Arriving at the rate of losses in respect of
purchase of each commodity
Find out of the requirement of each
member
Implementation in few VOs in each
Mandal.

The facilitation support

Training the VO Executive Committee
Training the CC and Activists in pilot
villages
Facilitating the emergence of purchase
committee, monitoring committee and
recovering committee in each VO.
Introduction of Books of Accounts.

Implementation process-the collection of

indent
Initially, requirement of
each member in each SHG
will be collected.
Requirements of the VO
will be arrived.
Proposal will be sanctioned
and the VO will be SPIA.
The purchase committee
procures the rice by
conducting market survey
in respect of quality and the
price of the commodity.

Implementation process-the
distribution
The distribution committee will distribute to
SHG leaders.
The SHG leaders will distribute to each
member on the same day.
At every stage of distribution, the
acknowledgements will be collected.

Time line
First of every month SHG requirement is
collected,
2nd to 4th of every month VO level
requirement is collected,
5th to 10th of every month, distribution of
rice from the mill to the VO, VO to SHG,
SHG to members.

Time line (contd..)

10th every month, last date for distribution
to the last member and collection of 1 st
installment.
17th2nd
installment,
24th ,
3rd installment ,
30th / 31st
final installment.

The basic model-rice centered

Only rice will be included
Recycling will be for every
month or for every six
months
One month-procurement
from open market or by
procuring the paddy
Six months- procurement
of paddy, mill it in local rice
mill and distribute to SHGs
for every six months

The Comprehensive model

The commodity basket includes five
commodities- rice, red gram, tamarind,
edible oil and red chillies
It will be either one month model or three
month model or six month model
In chenchu and other tribal areas the Food
Security Basket will comprise 25-30
commodities-all house hold requirements

Procurement

If rice or paddy, it is at VO level

In respect of red gram,
tamarind, edible oil and red
chillies it will be at VO level or
at MS level or at Area level
At VO level and MS level
procurement committees are
positioned out of the VO-EC or
MS-EC as the case may be
At AREA level the procurement
committee is constituted with
two members from each MS
within that MS

Recovery
If it is monthly recycling,
the recovery will be
completed from the
members within 3 weeks
If it is 3 month/6 month
model, recovery will be
completed within 5 months
In monthly model, the
instalments will be on
weekly basis
In 6 monthly model the
instalments will be on
monthly basis

Funds
The corpus of the SHG
The CIF from the VO/MS
The cash credit limit by the bank to the VO

Inclusive approach
Within the SHG, the food
security plan is prepared by
the SHG taking each
members requirement ,
particularly the POP- both
quality and quantity and the
nature of food grains
The repayment instalments
will be fixed as per the
convenience of the
members
The small loan provision is
available in the SHG to the
member in case she is not
able to repay that instalment

A poor women in
Dondapadu Village of
Thulluru Mandal Cooking
Rice

The progress

Total no of VOs
27,000
No of VOs covered
6827
No of SHGs covered
1,83,241
No. of house-holds covered 19,67,437
Quantity of rice
68,860 MT/month
-- 816,323 MT/year
Total turnover per year -- 898 crores
Total cost of the project Rs.68 crores

ANALYSIS OF "FOOD GAP" IN POOREST OF THE POOR AND THE POOR

HOUSE-HOLDS
Family
members
Sl.
No
.

Name of the
House Hold

.(1)

.(2)

Adul
ts

Child
ren

per
day
requi
reme
nt

.(3a)

.(3b)

.(4)

Mont
hly
requir
emen
t

Consumption
Before RCL

After RCL

Defi
cit
(in
Kgs)

% of
defic
it

per
day

per
mont
h

.(5)

.(6a)

.(6b)

.(7)

Defi
cit
(in
Kgs
)

% of
deficit

per
day

per
mont
h

.(8)

.(9a)

.(9b)

.(10)

.(11)

Kalva China
Mariamma

60

1.6

48

12

20

1.8

54

10

Kalva Peda
Mariamma

1.8

54

1.5

45

16.
7

1.7

51

5.6

Kukkamudi
Jyothi

60

1.6

48

12

20

1.8

56

10

Macherla
China
Venkaiah

90

2.6

78

12

13.
3

2.8

84

6.7

Kalva
Seshamma

60

1.6

48

12

20

1.8

54

10

Dasari
Masthanamma

90

2.6

78

12

13.
3

2.8

84

6.7

Source of Supply of Rice to the Poorest of the Poor & the Poor
Source of Supply
Before RCL
Sl.
No.

.(1)

Name of the
House Hold

.(2)

After RCL

FP
shop
s

Kirana
Shops

Paddy
Milling

Total

FP
shops

Kirana
Shops

Paddy
Milling

RCL

Total

.(3a)

.(3b)

.(3c)

.(3d)

(4a)

.(4b)

.(4c)

.(4d)

(4e)

Kalva China
Mariamma

20

28

48

20

34

54

Kalva Peda
Mariamma

16

29

45

16

35

51

Kukkamudi Jyothi

25

23

48

25

31

56

Macherla China
Venkaiah

30

48

78

30

54

84

Kalva Seshamma

26

21

47

26

28

54

Dasari
Masthanamma

27

51

78

27

57

84

The Impact
Reduction in Food Gap
and increase in food intake
by the poor
Reduction in price
Increase in real income
Increase in quality
Ensuring Total Food
Security
Caring for the aged,
destitute and pregnant
women
Capital formation in VOs
and MSs